Newly incorporated entity MIP Holdings acquires French Connection for $39.3m. Credit: Andrew Meredith / commons.wikimedia.org.

The board of UK-based fashion retailer French Connection has accepted a takeover bid from MIP Holdings, a newly incorporated entity that includes its second-largest shareholder.

MIP Holdings is directly owned and controlled by Apinder Singh Ghura, who holds shares of around 25.4% in French Connection, Amarjit Singh Grewal and KJR Brothers.

The consortium has offered £0.30 ($0.41) in cash for each of the fashion retailer’s scheme shares if the deal becomes effective.

It values the brand’s entire ordinary share capital, both issued and to be issued, at £29m ($39.3m).

French Connection chairman Stephen Marks said: “It was always our intention to look at the most appropriate ownership structure for the business once it was back on track and, having conducted a formal sale process, the Board has concluded that the offer being made by MIP is fair and reasonable.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“The price we have negotiated is at a significant premium to the share price prior to the commencement of the offer period and demonstrates the potential offered by the French Connection brand.”

Marks has announced he will step down from his role once the deal is completed.

He currently remains the company’s largest shareholder, with a 41.5% stake.

Marks said: “The French Connection Board is unanimous in recommending the acquisition to shareholders. When the transaction closes, I will retire from French Connection.

“This is an appropriate time for me to step back from the business that I founded in 1972, and I would like to take this opportunity to thank all our people for their contribution to our achievements over the years.”

The company started looking for suitors earlier this year as it struggled to recover from the impacts of the Covid-19 pandemic.

In March, investment firm Spotlight Brands confirmed plans to withdraw from making an offer for the brand.